Government might front-load borrowings to H1, say analysts

The government is likely to front-load its borrowing programme with over 50 per cent being carried out during the first half of the next fiscal, say analysts.
In its interim budget, the government had pegged its net borrowing for FY15 at Rs 4.57 lakh crore, Rs 11,580 crore less than the borrowing it has done during the outgoing fiscal. During FY14, the government had borrowed Rs 4.69 trillion from the market.
"Around 60 per cent of the borrowing will be done in the first half," said Chirag Doshi, fund manager for fixed income, BNP Paribas Mutual Fund.
The government is likely to announce its market borrowing calendar for the first half of FY15 next week. Analysts says although FY15 market borrowing will be usual but bond markets will be keenly await the amount the Reserve Bank will be borrowing every week.

"We have to see a weekly borrowing programme. If it is in the range of Rs 15,000-17,000 crore, then there could be some ripple effect in the market," a treasurer at a state-owned bank said.
In the first half of FY14, the government had borrowed almost Rs 15,000 crore every week, except in August, when it had borrowed Rs 16,000 crore in the week to August 16 and Rs 18,000 crore in the week ending August 30.